March 29, 2023

Dubai Week

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Oil markets sigh with relief. "Omigron" does not control demand recovery

Oil markets sigh with relief. “Omigron” does not control demand recovery

Crude oil prices have reached huge weekly gains of about 6 percent since last August, a reflection of the declining fear of the “Omigron” variable from the corona virus, which boosted market sentiment and strengthened positive expectations for the growth of global demand for crude oil. Oil and fuel.
Crude oil prices have risen again in recent days, following the biggest daily decline in the last two decades at the end of November, recording the largest weekly gains since last weekend in August (August).
The group of manufacturers in “OPEC +” continues to operate a gradual increase of 400,000 barrels per month until next January, and it assures the market that it is at a permanent meeting and is ready to intervene in the market soon. It is in a way that improves demand and sustainability and balance.
In this context, the international “oil price” report said that the oil markets began to show signs of recovery after the news that the impact of the “Omigron” variable on global demand may not be what was initially thought.
The report points out that the change in the “omigron” of the corona virus will not, as previously feared, be a strong factor in disrupting demand, and that oil markets in general have sighed with relief when they heard the sharpening demand. Global crude oil stocks are well below the five-year average. Brent crude is currently trading above $ 75 a barrel and West Texas Intermediate crude is trading at $ 72 a barrel.
He warned of weak domestic aviation activity in China, as well as many more negative risks to global demand, including the bankruptcy of real estate companies Evergrande and Kansas.
On the other hand, higher rates of inflation in the United States are driving upward prices and reducing the impact of factors depressing demand, with Saudi Aramco looking to deliver full levels next January despite higher official sales. Prices for Asian markets.He stressed that Aramco’s pricing strategy was very successful.
The report said the US administration, led by President Joe Biden, had not considered a ban on oil exports, despite widespread speculation that the dual impact of declining crude oil reserves and rising export flow abroad could force the US government to impose an oil embargo.
He pointed out that US strategic stocks were actually at their lowest level since 2003, while the next issue of strategic petroleum reserves had not yet been formed (which should be January-April 2022), indicating a decline in the United States. Strategic crude oil stocks are 600 million barrels per week. This is the lowest level since May 2003 last year.
The report points out that Canadian crude oil production is likely to peak in 2032 – according to Energy Canada’s forecasts – and other forecasts show that oil production in Canada will reach its peak in seven years in 2032. Reaches 5.8 million barrels per day, with an additional production of 1 million barrels per day coming from Alberta’s oil sands.
He pointed out that after the World Health Organization changed the WHO’s status to “Omicron” on November 26, the price of Brent crude oil fell by more than 10 percent, falling by $ 9.50 or nearly 12 percent. Becoming a concern.
This report highlights data from the US Energy Information Administration’s EIA that daily Brent crude oil prices have fallen by at least 10 percent in 8,629 trading days since 2000. , Brent crude was down 2 percent from the previous day’s level, up 72 percent this year before a sharp fall in prices on November 26.
The biggest single-day drop in Brent crude oil prices – before the fall of November last year – was 6.9 per cent, according to data collected by the Energy Information Administration on March 18. Panicked by Rush’s reports that the less-studied new Omigran variant would escape vaccine protection, on November 26, the day after Thanksgiving in the United States triggered a crash in all markets.
He said the fall in crude oil prices was further exacerbated as countries began to announce bans on flights from African countries, and that declining liquidity in the oil market over the holidays in the United States contributed to the fall in prices.
Over the next two weeks, he noted, fears subsided after Pfizer and Biontech announced that a third booster dose of their vaccine would be effective against the “Omicron” variant. “Omigron” However, early reports are encouraging, especially indicating that the symptoms of the new variant are mild.
On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) celebrated the fifth anniversary of the beginning of cooperation between OPEC and its independent allies, members of the OPEC +. The partnership was reached in September 2016 in Algeria. The collective agreement was then crystallized following the Vienna meeting.
Mohammed Barquinto, secretary-general of the Organization of the Petroleum Exporting Countries, said 23 oil-producing countries have succeeded in meeting the challenges, especially with effective and far-sighted policies to combat the impact of the Corona epidemic and catastrophe. Infectious.
He said OPEC’s declaration of cooperation between countries and abroad was a framework for the unprecedented partnership of the major oil producers who saw the need to work together for the prosperity of the global oil industry and to overcome the crisis.
Barcinto explained – in a statement to the organization on this occasion – that if it had not been for the group of countries and the courageous work they have done, the oil sector would have been in an undoubtedly different situation since the birth of this cooperation. In 2016, many doubts arose about its continuity, but it is a large and powerful partnership that will evolve and help restore the much-needed stability to the global oil market.
On the other hand, with the easing of “Omigron” tensions over last weekend’s crude oil prices, crude oil prices rose more than 6 per cent weekly, the biggest gain since August.
Oil prices fell on Friday, but gained the biggest weekly gain since late August as global growth and easing concerns about the impact of the “Omicron” variable on fuel demand boosted market sentiment.
Brent and U.S. West Texas Intermediate crude rose more than 6 percent this week, the first week in seven weeks, even after rapid gains.
And US West Texas Intermediate crude futures lost 26 cents or 0.4 percent during trading yesterday, after falling 2 percent in the previous session, to close at $ 70.68 a barrel.
Brent crude was down 41 cents, or 0.6 percent, at $ 74.01 a barrel after losing 1.9 percent on Thursday.
Earlier this week, the oil market accounted for half of the losses from the spread of the Omigron mutant from the corona virus on November 25. Early studies indicated that receiving three doses of the Pfizer vaccine provides protection against the new strain.
On the other hand, US energy companies added oil and natural gas rickshaws for the sixth time in seven weeks, as energy demand continued to grow after its decline due to the corona virus last year, and the number of rickshaws increased. Oil prices have plummeted in the last seven to six weeks.
The number of oil and gas leaks rose to 576 in the week ended December 10, according to the weekly report of Baker Hughes Energy Services.
Thus, the number of total oil and gas varieties increased by 238 rigs or 70 per cent over the same period last year.
The number of U.S. oil mines has risen four times this week to 471, the highest level since April 2020, while the number of gas rings has risen 3 to 105, the highest level since March 2020.

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